JK taps Chinese firm for marketing foray

Rupali Mukherjee

New Delhi, Dec 9: Domestic tyre companies have started strategic alliances with Chinese firms, with JK Ind finalising a tie-up for sourcing of light commercial vehicle (LCV) tyres.

JK Ind is in negotiations with a Chinese company for a marketing tie-up for commercial vehicles. "JK Industries may set up a marketing company in China which will manufacture commercial vehicle tyres with JK Tyres’ specifications and sell them under the JK brand," a senior company official told The Financial Express.

"We are studying various options, and one of them includes sourcing from there and selling tyres under the JK brand in the Chinese market," he added. "The product planning, technology and standards will be provided by our research and development institute, Hasetri in Rajasthan," he said.

"However, nothing is firmed up yet and the agreement may be finalised in the next fiscal. China gives a good platform in terms of augmenting capacity, but we are also looking at south east countries including Korea and Indonesia for sourcing of tyres," he said.

The company has recently started sourcing LCV tyres from China and exporting them to Latin America and the US. JK Tyres is the largest exported tyre brand in the country and is now expanding its market base by tapping markets in Africa, the Middle East and south east Asia. Plans are afoot to devise niche products to suit varying market needs. It recently launched Ultima XPS, designed exclusively for cars in the mid-sized and premium segment such as Hyundai Accent, Ford Ikon, Mitsubishi Lancer and Fiat Siena.